Cambodian economy to remain robust in medium term

Phnom Penh (VNA) - Cambodia's economy is predicted to stay robust
in the short and medium terms despite the uncertainty of preferential tariff
system granted to the country by several trading partners, according to
Cambodian Minister for Economy and Finance Aun Pornmoniroth.

He
said Cambodia's economy is expected to grow 7.1 percent in 2019, pushing up the
nation's gross domestic product (GDP) to 27.2 billion USD. The GDP per capita is
projected to be 1,706 USD next year, a rise of 9.1 percent from the 2018 figure.

The Southeast Asian country's economy has mainly been driven by garment
exports, construction and real estate, tourism and agriculture.

The
industrial sector, mainly garment and construction, is predicted to grow by 10
percent in 2019, while the service sector, mainly tourism, transport, telecom,
trade and real estate, is expected to increase by 7 percent, and agriculture
are projected to rise by 1.8 percent.

Pornmoniroth
said the uncertainty of the preferential tariff system some trading partners
have provided for Cambodia could pose a downside risk to the growth.

In
October, the European Union (EU) announced that Cambodia could lose its special
trade access to European markets under the Everything But Arms (EBA) preferential
trade scheme after it conducts a six-month review of the country's duty-free
status.

The EU is a major trading partner of Cambodia, especially in the textile and
footwear sectors. As a Least Developed Country, Cambodia has, for decades, exported
all products, except arms and ammunition, to European markets with duty-free.

Ken
Loo, Secretary General of the Garment Manufacturers Association in Cambodia, said
over 46 percent of Cambodia's total apparel and footwear exports is to the EU.

The kingdom's export to the bloc was valued at about 5.7 billion USD in 2017,
according to EU data.-VNA